Both in the event the CBOE future expired and from now on, in the event the CME bitcoin future is arriving settlement, there was clearly a considerable decline in the bitcoin price. Both futures has a good low volume and i also would reckon that they are dominated by a unitary liquidity provider\/market maker. This market maker is most likely short the future and possibly long lots of. At expiry, they’ll profit in the event the costs are low where you can border after settlement if the cost rebounds. Sadly both CME and CBOE has chosen a very bad settlement processes which can be all to easy to manipulate. For CBOE oahu is the auction price for Gemini – a young with a tiny volume most of the time.
CME’s model is better, however of low quality, VWAP for the four major exchanges may be beneficial, however, if that VWAP is calculated on one minute of trading it’s meaningless. With few large participants, the quantity on a real brief period is very limited. Regardless if many large participants would have interests in any of the settlement processes they’d most likely have the identical position and advantages from the same side of the market manipulation. The VWAP should have been calculated over many hours instead). In conclusion is always that we likely will discover a lots of strange market activity around each future expiration and expect a rebound after 3 pm Central time today!.
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